Web3 Project Risk Assessment and Fund Tracking: Key to Asset Security

With the rapid development of blockchain technology, Web3 projects are receiving increasing attention. However, some unscrupulous project parties attract investors through false advertising and excessive marketing, which may lead to significant losses for investors. Common deceptive tactics include promising high returns, using flashy advertisements, fabricating data, and concocting backgrounds. If investors fall for these false information, they may invest blindly and ultimately incur losses.

Worse still, some unscrupulous project parties resort to malicious dumping and other means to force investors to cut losses, thereby obtaining huge profits. This behavior not only severely undermines the interests of investors but also threatens the stability of the entire cryptocurrency market.

To address these challenges, a professional Web3 security team has developed a project risk assessment service. This service conducts a comprehensive evaluation of Web3 projects through multiple detailed criteria across both on-chain and off-chain dimensions, including 17 on-chain criteria and 9 off-chain criteria, aiming to comprehensively determine the security of the project party.

The evaluation process includes a comprehensive collection of project information, analysis of on-chain fund transaction situations, and project promotional materials, to determine whether the capital flow aligns with the project documentation. The specific evaluation content covers: whether the token distribution is consistent with the documentation, whether the contract logic complies with the project description, whether there are malicious dumping behaviors, whether there is abuse of privileges by contract privileged roles for profit, and the official operation timeline, among other aspects.

When illegal profit-making behavior by the project party is confirmed, assistance can be sought through professional cryptocurrency tracking services. Such services can deeply analyze transaction history, including key information such as transaction amounts, times, and more, as well as track the flow of funds to determine the transfer path and final destination of the cryptocurrency.

Taking a practical case as an example, the project has issues such as uncertainty in token distribution and discrepancies between the white paper description and the actual progress. Many investors blindly purchased the project's tokens and ultimately suffered significant losses due to malicious dumping. After receiving help requests from investors, the security team conducted an in-depth analysis of the project's operation and added labels to addresses that might be involved in the dumping for tracking analysis.

Cryptocurrency tracking services mainly include two directions: tracking of malicious profit funds from project parties and tracking of stolen funds.

In the malicious profit tracing of project parties, professional teams will conduct a comprehensive analysis of the fund flow of the project parties and compare promotional documents from different periods. Through advanced fund tracing technology, in-depth analysis will be conducted on addresses suspected of malicious dumping to uncover clues about the project parties and assist investors in recovering their funds.

The tracking process will simultaneously use both on-chain and off-chain methods. In on-chain analysis, various fund flow situations will be examined in detail, including key information such as the project party's on-chain fee sources. To improve tracking efficiency, obtaining more relevant information is crucial. Details about the project can be gathered from affected users, such as participation time, loss amount, understanding of project rules, community participation status, preservation of promotional materials, and whether they have participated in public offerings or airdrop activities.

When conducting malicious profit tracking, professional teams utilize internal tools and on-chain tagging libraries to quickly sort out information such as fee sources, address balances, and transaction habits. By analyzing the tracking hierarchy, they can determine the source, destination, and trading counterpart of funds for that address, ultimately creating a complete fund flow diagram to realize on-chain address profiling and identify key personnel.

For tracking stolen funds, after confirming the stolen address, amount, and time, related addresses will be monitored in real-time. The final destination of the funds can be determined through the tag library. If the funds flow into an exchange, attacker information can be obtained through investigation and evidence collection; if the funds enter a mixing platform, more in-depth analysis and evidence collection will be required to identify the attacker.

It is worth mentioning that some security companies possess comprehensive cybersecurity capabilities, which include not only Web3 on-chain and off-chain threat intelligence but also binary research capabilities (such as vulnerability digging, malicious code analysis, APT attack analysis, etc.) and traditional web security capabilities (such as penetration testing, red-blue teaming, etc.). These integrated capabilities can provide significant advantages for asset tracking and attacker attribution when conditions permit.

Overall, the launch of risk assessment services for Web3 projects aims to enhance the security of the Web3 ecosystem and protect investors from unnecessary losses. However, due to the inherent characteristics of blockchain, absolute accuracy of data cannot be guaranteed. Therefore, investors must remain highly vigilant and carefully choose Web3 projects. Before participating in any project, they should thoroughly study the official documentation and gain a deep understanding of the background of the project team to avoid blindly following trends. In the unfortunate event of funds being stolen, they should promptly seek help from professional security teams and recover funds through legal means. Protecting asset security requires collaborative efforts between investors and security institutions.